This paper presents a comprehensive and critical analysis of the relationship between innovation and sustainability in the contemporary global context. With increasing environmental degradation, climate change, and socio-economic disparities, innovation is frequently promoted as a central solution. However, the outcomes of innovation are not always aligned with sustainability. This study integrates perspectives from innovation theory, ecological economics, environmental humanities, and Indian Knowledge Systems to examine the complexities of sustainable innovation. It argues that innovation must shift from profit-driven frameworks to ethical, inclusive, and ecologically grounded paradigms. The paper also incorporates global and Indian case studies and aligns the discussion with Sustainable Development Goals (SDGs), thereby presenting a holistic understanding of sustainability.